Al Salam made a profit of BHD2.88 million ($7.64 million) in the quarter ended December 31, compared with BHD5.79 million in the year-earlier quarter, according to Reuters calculations.

The bank in a regulatory filing said full-year net profit grew 10.3 per cent to BHD25.54 million.

It said in the statement it gained BHD30.27 million from divesting held-for-sale assets during 2008, compared with 11.02 million of assets held-for-sale sold in 2007. The bank did not provide specifics on these assets.

Islamic banks cater to investors who want to avoid earning or paying interest, viewed as usury under Islamic law.